These Two Major Biotechs Are Bouncing Back With Q3 Results

Amgen Inc. (NASDAQ: AMGN) and Gilead Sciences Inc. (NASDAQ: GILD) released their most recent financial results after closing bell Wednesday. While most major have outperformed the broad markets, firms have lagged. However, these positive results could be signalling a bounce for these two biotechs.

24/7 Wall St. has put together some highlights from the most recent quarterly reports from both of these companies, including a recent trading history and consensus target.

Amgen said that it had $4.37 in earnings per share (EPS) and .4 billion in revenue, versus consensus estimates that called for $3.80 in EPS and $6.35 billion in revenue. The third quarter from last year had $3.66 in EPS and $5.74 billion in revenue.

Total third quarter revenues increased 12% year over year, driven by higher volume growth, partially offset by lower net selling prices and the effects of the COVID-19 pandemic.

Product sales increased 12% globally, driven by 18% volume growth across a number of Amgen’s newer products, including Otezla, Mvasi, Kanjinti, and Repatha.

For the 2020 full year, Amgen issued guidance calling for EPS in the range of $15.80 to $16.15 and total revenue in the range of $25.1 billion to $25.5 billion. Analysts are calling for $15.77 in EPS and $25.41 billion in revenue for the full year.

Amgen stock closed Wednesday at $216.42, with a 52-week range of $177.05 to $264.97. The consensus analyst price target is $260.79. Following the announcement, the stock was up less than 1% at $218.00 in the after-hours session.

Gilead posted $2.11 in EPS on $6.6 billion in revenue for the third quarter. Analysts were calling for $1.95 in EPS and $6.39 billion in revenue. The third quarter from last year had $1.64 in EPS and $5.6 billion in revenue.

During this quarter, revenues reflect the continued impact from the COVID-19 pandemic on HCV and pre-exposure prophylaxis (PrEP). However, Gilead continued to see signs of recovery in and the United States during the third quarter 2020.

In terms of its product sales, the firm reported:

  • HIV product revenue increased 8% year over year to $4.55 billion.
  • HCV product revenue decreased 31% to $464 million.
  • Cell Therapy product revenue increased 25% to $147 million.
  • Veklury revenue came in at $873 million.
  • Other product revenue decreased 11% to $462 million.

Looking ahead to the 2020 full year, the company expects to see EPS in the range of $6.25 to $6.60 and product sales in the range of $23.0 billion to $23.5 billion. Consensus estimates are calling for $6.98 in EPS on $24.17 billion in revenue for the full year.

Gilead stock recently closed at $58.72, with a 52-week range of $58.06 to $85.97. The consensus analyst price target is $78.42. Following the announcement, the stock was up nearly 2% at $59.75 in the after-hours session.

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